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Life Insurance Underwriting The underwriting process for life insurance is an extremely complicated process used to determine whether an applicant is qualified for insurance, and if so, what premiums the buyer will pay. Underwriters use complex risk tables provided by actuaries, who take statistics for every possible factor. The underwriter then uses these tables for qualification and premium rates for those applicants seeking the protection that life time annuity provides. Underwriters take many factors in to consideration before issuing a policy. They include your present health condition, your past health problems, your possibility of contracting a family disease, your lifestyle, your credit rating, and your driving record. Each of these risk factors is assigned a numerical value to determine the buyer's risk. The entire life time coverage underwriter plays an important role in the insurance industry. An underwriter who is liberal with guidelines will cost the insurance company a lot of money. On the other hand, an underwriter who is too strict will disqualify too many potential customers. To keep a profitable balance, the annuity industry assigns numerical scores that are a standard for the company. The result is an objective way to determine your premiums and your qualifications. The first factor the insurance underwriter will consider is the initial application that the prospective customer submits. This questionnaire is an exhaustive representation of your health history and present health condition. You are expected to be thorough and honest when filling out these forms. You will also be asked to provide information on your ancestor's health history to find out if you are at risk for suffering a disease that runs in your family. For example, if your parent or grandparent suffered from heart disease or certain cancers before they reached 60, you are given a lower score for family history. The next factor the life insurance underwriter will consider is the information provided by your doctor that determines your present health. There are many things in your physical examination that will affect you premiums and qualifications. You lose points if you smoke. You lose points if you have a high risk occupation, such a police officer, coal miner, or commercial fishermen. Each occupation falls in to a category of risk and your premium will be adjusted to reflect you job. Most insurance companies will also ask you about your current lifestyle and ask questions concerning your hobbies. If your passion is skydiving or even hunting, you will be considered a greater risk. To be dishonest anywhere on your application could be costly. If the insurance company finds that you have been dishonest on your application, you may lose your coverage and forfeit any premiums already paid. A controversial area of the life long coverage plans and its underwriters factors is your credit rating. Some insurance companies make as part of their offer for insurance that you release you credit report for examination by the life insurance underwriters. The premise, and there are facts to base this on, are the lower your credit score, the greater risk are. Statistics have shown that those with lower credit ratings don't live as long as those who have excellent credit. It also helps the insurance company decide whether you will be able to pay your premiums on time.


Another factor considered by the entire life underwriting department is your driving record. If your record indicates that you are a poor driver than your premiums will be higher. Too many claims on your auto insurance company are a warning sign to the policy holder underwriter that you may be a poor risk. Poor drivers have a lower life expectancy than those who don't. Geography is still another factor taken in to consideration by the life insurance underwriters. It is common sense that someone who lives in a high crime neighborhood is more likely to die earlier than someone who lives in a safe neighborhood. It is important to be wary of life insurance companies that offer no document policies. Any company that does not perform an exhaustive evaluation of your risk factor should raise a red flag in you mind. It is also important to keep in mind that life insurance writers are not evil. They are doing a vital job that protects the company and protects the rest of us from higher premiums. Over 50 life insurance


Life Insurance Underwriting